In an effort to promote workforce development and support small manufacturing businesses, three Assembly Democrats sponsor a bill that would create a manufacturing reinvestment account program in New Jersey.
The legislation incentivizes manufacturers with 50 employees or less to reinvest in their own businesses by providing tax rate reductions, deferrals and accelerated deductions on funds placed in and removed from a reinvestment account. Companies would be able to deposit up to $100,000 every year for five years to be withdrawn at a later date for the purpose of training their workforce or purchasing updated equipment.
Upon the bill (A-2624) being advanced by the Assembly Commerce and Economic Development Committee on Thursday, Assembly sponsors Carol Murphy (D-Burlington), Jamel Holley (D-Union) and Robert Karabinchak (D-Middlesex) released the following joint statement:
“With more than 2,500 advanced manufacturers in our state and nearly 9,000 manufacturers in total, the manufacturing industry is a major contributor to New Jersey’s economy. It’s important we help this industry thrive by encouraging manufacturers to invest in their own companies.
“By providing tax deductions and benefits to businesses that use the money in their reinvestment account for certain company improvements, employees would be given the skills and technology they need to better perform these high-demand manufacturing jobs. Manufacturers would also be able to create more jobs and contribute more to our economy by receiving a larger return on their profits.
“Thousands of people are employed by small manufacturing companies that produce chemical, petroleum, food and pharmaceutical products – among others – throughout New Jersey. It just makes sense to help an industry that has such a big impact on our state and the people who live and work here.”